This disclosure relates to illicit e-commerce and, more specifically, to network-based systems and methods for identifying suspect illicit merchants by using financial transaction data.
Over the past several years, e-commerce has increased to the point where over one million dollars of e-commerce transactions occur about every 30 seconds. Understandably, many merchants now provide virtual purchase platforms (in addition to in-person, brick-and-mortar purchase platforms), offering merchant-run websites that allow consumers to browse their stores and purchase goods simply and conveniently. However, as legitimate e-commerce has increased in volume, illegitimate e-commerce has also increased. Illegitimate e-commerce refers generally to illegal transactions performed over the Internet, including selling counterfeit goods, selling illegal products (e.g., prohibited substances), or trafficking in child pornography. Such illegitimate e-commerce may cause brand and/or reputation damage for a number of parties, for example, the brands whose goods are being counterfeited, as well as the payment processing network that processes and therefore facilitates such illicit transactions. There is a need for a system that identifies websites, merchants, and/or acquirers suspected of such illicit activity.